Airlines, impact for the next 3 years?

baileysbattlebus

lostinrates wrote: »

I find the whole air thing very interesting. e.g. I'm surprised at how generous, in time of struggle, BA's staff flight benefits are.

Tbh, LIR, the blame for the losses BA are suffering belong purely at the door of BA management.

How many £millions were they fined last year for colluding with Virgin over fuel surcharges - I think the Office of Fair Trading fined them over a £100m. Virgin got off lightly by coming clean first and pointing the finger at BA. I think the fuel surchaging fiddle started around 2004 - no crisis then.

Then they were fined $300m in the US for price fixing in both cargo and passenger operations. Along with a number of other airlines. Quantas actually had on exec go to prison.

Then they settled a $200m class action lawsuit in the US along with Virgin

Then they lost millions hedging fuel prices the wrong way - they buy fuel up to 2 years out. I think the fuel hedging losses alone would have covered the £400m loss they suffered last year. I think someone must have told them oil wouldn't fall below a $120 a barrel -

They made a pre tax profit in 2007 of over £800m.

The last couple of years have been a catalogue of crime.

I'm not really surprised the cabin staff are p*ssed - regardless of their benefits, pension and salary - I suppose I would be too - They will obviously try and squeeze the operational staff as much as they can. I hope the execs and board members are being equally squeezed.

One the other hand I actually fly BA quite a lot to the US and I like them and their cabin staff. They've never lost my bags either - well not yet!

Edit - can't spell finger!!

lemonjelly

And now bmibaby are cutting jobs & restructuring.
Not a good time to be in the business it appears...
http://news.bbc.co.uk/1/hi/england/8342207.stm

RJP33

BA are changing their operating model to cope at the moment, so I expect them to struggle over the next few years and then come out better for it.